RBA Rate Hike stalled by inflation
Philip Lowe, Governor of the Reserve Bank of Australia (RBA) has recently suggested that a hike in interest rates may not occur until 2019, citing struggling inflation as the reason for holding fire on a hike. This does not bode well considering the US Dollar is considered a safe haven currency and currently offers the same return as the Australian Dollar. The forecast for hikes from the Federal Reserve is that there could be as many as three, which would make the Aussie considerably less attractive to investors.
On Tuesday Home Sales figures are released. New Home Sales is a key barometer as to the health of the housing market and can give an indication as to what is expected in the future. If there is a high reading above expectations we could see Australian Dollar strength.
Keep a close eye on Iron Ore Prices
If you have a trade involving the Australian Dollar it is always wise to keep a close eye on Iron Ore prices. Iron Ore is Australia’s primary export and fluctuations in price will alter the price of the Australian Dollar. With the Chinese being the main purchaser of Iron Ore it may also be shrew to keep an eye on growth figures from China.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs.
Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at [email protected] . (Daniel Johnson) Thank you for reading.